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Policymakers have focused primarily on increasing Medicaid reimbursement
rates to increase physicians participation in Medicaid, although physicians often complain
of payment delays and other administrative burdens associated with Medicaid. Linking
state-level data on average reimbursement times to the 2004–05 Community Tracking
Study Physician Survey, this study examines how Medicaid reimbursement time affects
physicians willingness to accept Medicaid patients. Delays in reimbursement can offset
the effects of high Medicaid fees, thereby lowering participation to levels that are closer to
those in states with relatively low rates. Increasing these rates may be insufficient to increase
physicians participation unless accompanied by reductions in administrative burden.

This article is available at the Health Affairs Web site by clicking
here. (Subscription required.)